The RI Republican Policy Group responded Thursday to Speaker of the House Nicholas Mattiello’s criticism of a DOT funding plan that they unveiled earlier this week which they say would fund DOT projects without adding tolls or raising gas taxes.
Mattiello has called the plan “recycled” and “flawed”, and said that he “prefer(s) an approach that produces a genuine, sustainable revenue source that helps us grow economically. The minority of the minority caucuses is more interested in making a political statement than working collaboratively to address our transportation infrastructure needs.”
Saying that the Speaker’s office “must transcend partisan politics”, the chair of the Republican Policy Group Representative Patricia Morgan outlined a step by step rebuttal to Mattiello’s claims that the plan was not feasible. Here is Morgan’s statement in full: (See Mattiello’s original statement criticizing the plan HERE.)
“Unfortunately, without taking the time necessary for a thorough analysis, Speaker Mattiello dismissed the Republican’s responsible plan to fix Rhode Island’s bridges. While there is always a political edge in the General Assembly, the Office of Speaker must transcend partisan politics – and we all must put electioneering aside when we consider issues that profoundly affect our economic stability and public safety. We remain committed to open dialogue with all, regardless of political affiliation, in order to reach common ground and stop the damage that tolls and massive debt financing will wreak on our state’s taxpayers, consumers, small businesses and trucking industry.
The Republican Policy Group spent this past summer refining our bridge repair plan. At its core, our plan calls on government to do what many of our families and neighbors must; tighten belts and prioritize. The money already exists in our current state budget to do the necessary repairs – and we have shown how this can be responsibly accomplished. We don’t cut one social program or any critical government functions. We do not resort to the tolls or substantial debt proposed by Governor Raimondo.
Our Structural Deficit
As a member of the Finance Committee, I am acutely aware that our state has a projected deficit for future years. We surely won’t cure it by burdening our citizens with over $1.3 billion in debt and hampering our already stagnant economy with the increased cost of consumer good and raw materials from tolls. That type of thinking is exactly what has gotten us into this mess. Instead, we must institute structural changes to the way we run government, including: the modification and elimination of laws, regulations, and practices that are strangling our state’s competitiveness; demanding value out of each tax dollar and using it effectively and efficiently; educating a 21st century workforce and attracting 21st century job creators; and skillfully promoting of our hospitality and tourism sector.
The Republicans are willing partners in any effort that improves Rhode Island’s business climate and grows our economy. Adding tolls and more debt will just be more millstones on our financial security.
Responsible Infrastructure Repair
A few years ago, the General Assembly recognized that heavy transportation borrowing was a major contributor to our state’s budget deficits. We wisely changed course and began to fund our federal highway match from current resources without borrowing. The Governor’s debt-laden toll proposal will take us backwards by requiring our state to pay more than $1.3 billion over 30 years – for only $620 million today! With history as our guide, it is quite clear this won’t help our future deficits. Over time it will make them worse.
The state already takes enough money from taxpayers to repair our bridges. We don’t need to borrow more. The Republican plan details funding from existing revenue if Rhode Island’s leaders make a 10 year commitment to prioritize bridges and get the job done. We can prevent a debt disaster for future generations, eliminate the need for tolls and make the desperately needed bridge repairs.
RICAP
Each year we put 3% of our budget into a rainy day fund. By law, this rainy day fund is capped at 5% of the budget. The extra money funds RI Capital Asset Protection, or RICAP, for repairs to state buildings. Approximately $120 million goes into RICAP every year. Our plan takes only $25 million of RICAP funds for vital bridge repair, which leaves $95 million for other projects.
Film Tax Credits
We reduce Film Tax Credits by a third, leaving the majority in place. These credits are not nearly as important as critical bridge repairs. Our study reveals that 75% of the wages from the film industry are being covered by taxpayer funds via the tax credit. Workers within the industry come and go with projects, and after ten years, no permanent presence has grown. There has been little boost to our economy. Frankly, that’s a poor deal for taxpayers, when our bridges are failing.
Twin River Corporate Welfare
The “marketing effort” the Speaker refers to is the $500,000 in corporate welfare the state pays to Twin River – a private company that just bought Newport Grand. Certainly, the casino operator studied the deal and knew the risks and benefits. The purchase price was undoubtedly tied to Newport Grand’s profits and losses. The People should not be forced to subsidize Twin River’s profits – especially when we need money to repair our seriously deficient bridges. The safety of travelers cannot take a back seat to the profits of a private corporation.
DMV Fees
The General Assembly increased DMV fees by 40% in the past two years on the promise that the money collected would be used to fix bridges. The Republican plan holds leadership to that promise. Nothing is double-counted. We make annual budgets in Rhode Island and have not given RIDOT money for 2017. The general fund now holds most of these fees. That means they are available for bridge repair.
The RIDOT currently receives nearly $500 million per year. The Governor recently announced the restructuring of DOT that she estimates will save $1 billion over the next ten years. Surely RIDOT can work within that large sum to fix and maintain our roads. RIDOT does not need the additional DMV fees to maintain roads. We believe that not only should the state keep its promise to use these funds to fix our bridges, but that this use is the highest priority for these funds.
Rhode Island is at a critical junction – and we have a choice. Are we going indebt our children and toll our economy because we as leaders cannot get our priorities straight and are afraid to make tough decisions? Or, are we going to honor the sacrifices our citizens make every day and use the money we already take from them – instead of demanding more and more? The answer is clear to Republicans. We have the money to fix our neglected bridges without resorting to tolling and massive debt. We, as a state, must have the courage to make a sustained commitment to our infrastructure. It is overdue.”
